December 10, 2010

RE: ANNOUNCEMENT OF MINIMUM PRICES FOR CLASS 1 MARKET MILK TO ALL INTERESTED PARTIES:

On the reverse side of this page are the minimum prices for Class 1 market milk for January 2011. All prices are f.o.b. milk processing plant. As provided in the Stabilization and Marketing Plans for Market Milk (Plans), milk handlers shall pay producers the minimum prices for market milk components sold or used for all Class 1 purposes as specified on the reverse side of this page.
If market milk components are purchased f.o.b. producer’s dairy location, haul deductions may be made as provided in the Plans.
Equivalent hundredweight prices shown in the right-hand column are based upon milk that is 3.5% fat and
8.7% solids-not-fat (SNF). These classified minimum prices that processors must pay for milk received from producers are calculated based upon mathematical formulas. The formulas are established and amended as needed through a public hearing process. These formulas include commercial prices for manufactured dairy products (butter, Cheddar cheese, Western dry whey and nonfat dry milk). These commercial prices are also listed on the reverse side of this page.
You can access class price information over the Internet on the Department’s dairy homepage at http://www.cdfa.ca.gov/dairy. From the main menu, select the [Dairy Prices] link and then the [Minimum Class Price Letters] link. Once there, be sure to make a bookmark for future reference. Current class price
information is also available on a recorded message. Please call (800) 503-3490 to hear the recording. If you are calling from Sacramento, or from outside of California, please call (916) 442-MILK.
For more information, please contact us at the telephone number or e-mail address below. Sincerely,

Candace Gates, Chief Dairy Marketing Branch